FX.co ★ Technical analysis of USD/CAD for January 8, 2016

General overview for 08/01/2016:

The top for the wave -v- of the wave 5 might be in place, but this possibility will be confirmed only if the level of 1.4045 is violated. The bearish divergence supports this view and the recent drop in the price is the biggest one since the corrective cycle between the waves -i- and -ii-, so the price overbalance is present as well. The next projected target level is the technical support at the level of 1.4000.

Support/Resistance :

1.4168 - Swing High

1.4122 - Intraday Resistance

1.4058 - WR3

1.4045 - Intraday Support

1.4000 - Round Number Support

1.3932 - WR2

1.3872 - Weekly Pivot

Trading recommendations:

Buy orders opened on Monday this week should now be closed with profit after trailed SL at the level of 1.4107 was hit overnight.

Currently, day traders should consider selling this pair only if the level of 1.4045 is clearly violated.